FDJ United cuts 2026 outlook again as taxes and jackpot drought bite

FDJ United cut its 2026 outlook for the second time in three months after reporting weaker trading in the first nine months of the year, management said on 22 October 2026. Nine-month revenue fell 5.6 per cent to €2.58bn and gross gaming revenue (GGR) declined 2.8 per cent to €6.26bn, while the group said higher gaming taxes reduced revenue by €62m and accounted for more than two percentage points of the decline.

Performance by the numbers

The company reported that profit and GGR both worsened through the third quarter. For the nine months to 30 September, profit was reported at €2.58bn (a figure the company cites alongside the revenue decline), while GGR was €6.26bn, down 2.8 per cent year‑on‑year.

Quarterly deterioration was more pronounced: third-quarter profit declined 8.1 per cent to €794m and GGR fell 6.1 per cent to €1.95bn. Online betting and gaming GGR slipped 0.8 per cent to €1.01bn, but profit from online activity dropped 8.2 per cent to €619m after €34m of additional taxation. Retail sports betting profit fell 4.5 per cent to €297m as customer payouts rose sharply.

The group told investors that gaming tax increases reduced profit by €62m during the first nine months and that its updated guidance factors in more than €70m of additional gaming taxes for 2026.

What drove the downgrade

FDJ United pointed to a combination of higher taxation, weaker lottery activity and continued difficulties in the United Kingdom and the Netherlands. Lottery performance was notably affected by a sharp reduction in large EuroMillions jackpots: by September there had been only one jackpot above €200m compared with 12 a year earlier, and the company also noted there had been 12 EuroMillions jackpots above €130m by September compared with 27 a year earlier.

Instant lottery games proved more resilient: instant lottery GGR increased 1.9 per cent, the results showed. Retail operations in France were impacted by lower footfall amid an unfavourable economic context, the group said.

Chairwoman and chief executive Stéphane Pallez described the September performance as the result of “factors inherent to the gaming sector, a decrease in traffic at points of sale against a backdrop of an unfavourable economic climate, as well as the expected increase in taxation.”

"In this challenging environment, the Group remains fully committed and is resolutely pursuing the implementation of its action and performance plans to swiftly regain a sustainable growth momentum, underpinned by innovation and the attractiveness of its product portfolio," said Stéphane Pallez.

The company expects GGR to decline by a low single‑digit percentage in 2026 and profit to fall by a mid‑single‑digit percentage, with management aiming to hold a recurring EBITDA margin of around 23 per cent through strict cost controls. The group reiterated a commitment to increase its dividend annually, targeting a payout ratio of at least 75 per cent of adjusted net profit.

Operational and product actions

FDJ United has accelerated operational reforms and technology consolidation as part of turnaround plans. A new management team has been tasked with improving profitability and accelerating online growth. The group is rolling out a single proprietary sportsbook platform across its operations, with the technology expected to be deployed in most markets by the end of 2027; this work ties directly to the company’s online recovery plans and to its sports product strategy.

Development teams across Europe are being reorganised to support that platform deployment. The group is also reviewing its market footprint and non‑core assets, specifically within its Payment and Services division, with findings due no later than early 2027; that review touches on the company’s payments operations.

FDJ United plans promotional activity in the fourth quarter and has scheduled relaunches of Loto and EuroMillions in 2027, alongside the introduction of a new €10 instant‑win game and enhancements to its digital lottery offering. The company said its relaunches and platform upgrades will run through 2027 and form a central part of its recovery strategy for the United Kingdom and the Netherlands.

Outlook and calendar

The group lowered full‑year 2026 guidance in light of the tax and market pressures, and has said it will publish its full‑year 2026 results on 18 February 2027. Management continues to target the stated margin and dividend ambitions while pursuing product relaunches and technology consolidation across its markets.

Oliver Grant, Industry Technology Correspondent, contributed reporting and analysis for this story.